Pakistan Telecommunication Company Limited (PTC) - May 2023

Pakistan Telecommunication Company Limited (PTC) – May 2023

Research Team

Table of Contents

Corporate Briefing Notes

Pakistan Telecommunication Company Limited (PTC) held its corporate briefing session to discuss the financial results for CY22 and its outlook.

Key Highlights

● Net sales for the group increased by 10% YoY to PKR 152bn in CY22, compared to PKR138bn in SPLY. The growth is attributed to positive revenue growth by all three companies in the group. However, company’s consolidated bottom-line was affected by various macro factors including higher energy prices, additional tax, massive rupee devaluation and increase in interest rates.
● On standalone basis, company has recorded highest ever revenue of PKR83.4bn, up by 9% YoY in CY22 against PKR77bn in CY21. The growth is mainly due to 12% YoY increase in the Wireline data.
● The management shared that with the majority market share, PTCL continued to dominate the Fixed Broadband industry. Its Fiber-To-The-Home (FTTH) service subscriber base doubled on a YoY basis and the segment’s market share grew from 17% to 27% during the period ended in Dec’22.
● Ubank, the group’s microfinance bank, achieved a double-digit revenue growth of 35% YoY in CY22, on the back of increase in deposit base of 68% YoY to PKR37bn and loan amount of 39% YoY to PKR14bn, respectively. To note, around 57% of loan amount is secured by gold. Ubank is continuously focusing to increase its footprints across the country. The bank’s branch network increased by 300 braches by the end of Dec’22. Moreover, Ubank has acquired commercial License for nationwide Islamic banking services.
● Ufone’s revenue increased by 7% YoY in CY22. During the year, Ufone has added 12% of the new site, taking the total number of site to 11.4K and similarly total subscriber base also increased by 1mn to 23.6mn, respectively.

Future Outlook

● Going-forward, volatility in interest rates coupled with high energy prices continuous PKR devaluation pose a challenge to company’s growth. However, the company is optimistic towards growth strategy of expanding its FTTH network.

Important Disclosures


This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.

Analyst certification:

The research analyst for this report certifies that 1.all of the views expressed in this report accurately reflect her personal views about the subject and part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this report.

Share it!

Scroll to Top

Step Towards Secure Investments